DEFSEC Technologies (NASDAQ:DFSC – Get Free Report) and VSE (NASDAQ:VSEC – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Insider & Institutional Ownership
21.4% of DEFSEC Technologies shares are owned by institutional investors. Comparatively, 91.5% of VSE shares are owned by institutional investors. 1.8% of VSE shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares DEFSEC Technologies and VSE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DEFSEC Technologies | -120.97% | -144.66% | -82.13% |
| VSE | 6.17% | 6.71% | 4.76% |
Analyst Recommendations
This is a summary of recent ratings for DEFSEC Technologies and VSE, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DEFSEC Technologies | 1 | 0 | 0 | 0 | 1.00 |
| VSE | 0 | 3 | 7 | 2 | 2.92 |
VSE has a consensus price target of $260.00, indicating a potential upside of 60.57%. Given VSE’s stronger consensus rating and higher probable upside, analysts clearly believe VSE is more favorable than DEFSEC Technologies.
Risk and Volatility
DEFSEC Technologies has a beta of 2.82, meaning that its stock price is 182% more volatile than the S&P 500. Comparatively, VSE has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.
Valuation & Earnings
This table compares DEFSEC Technologies and VSE”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DEFSEC Technologies | $7.52 million | 0.20 | -$6.88 million | ($4.62) | -0.16 |
| VSE | $1.11 billion | 4.08 | $11.70 million | $3.12 | 51.90 |
VSE has higher revenue and earnings than DEFSEC Technologies. DEFSEC Technologies is trading at a lower price-to-earnings ratio than VSE, indicating that it is currently the more affordable of the two stocks.
Summary
VSE beats DEFSEC Technologies on 14 of the 15 factors compared between the two stocks.
About DEFSEC Technologies
DEFSEC develops and commercializes breakthrough next-generation tactical systems for military and security forces. The Company’s current portfolio of offerings includes digitization of tactical forces for real-time shared situational awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and weapons. Other DEFSEC products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems, and all come integrated with TAK. The Company also has a new proprietary non-lethal product line branded PARA OPSTM with applications across all segments of the non-lethal market, including law enforcement. The Company is headquartered in Ottawa, Canada, with representative offices in London, UK and Abu Dhabi, UAE.
About VSE
VSE Corporation operates as a diversified aftermarket products and services company in the United States. The company operates through two segments, Aviation and Fleet. The Aviation segment provides aftermarket parts supply and distribution; maintenance, repair, and overhaul services for components and engine accessories supporting commercial, business, and general aviation operators. This segment serves commercial airlines, regional airlines, cargo transporters, MRO integrators and providers, aviation manufacturers, corporate and private aircraft owners, and fixed-base operators. The Fleet segment offers parts supply, inventory management, e-commerce fulfillment, logistics, supply chain support, and other services to support the commercial aftermarket medium- and heavy-duty truck market. This segment also provides sale of vehicle parts and supply chain services to support client truck fleets, as well as sustainment solutions and managed inventory services to government and commercial truck fleets. VSE Corporation was incorporated in 1959 and is headquartered in Alexandria, Virginia.
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